BoE: Banker Salaries Need to be Regulated Not Just Bonuses

Fixed pay has risen after bonuses have been capped by new EU rulesReuters

Bank of England Governor Mark Carney revealed that regulators are looking at ways to regulate fixed pay, after salaries rose dramatically following new curbs on bonuses.

Carney said in a speech in Singapore that new ways to regulate fixed pay may include ways to claw back salary in the event of wrongdoing.

Standards may need to be developed for non-bonus or fixed pay, said Carney.

The European Union Council pushed through the plan earlier this year to cap bankers' bonuses at a maximum of double their salary from 2015. The measure will come in on 2014's bonuses that will be paid out at the start of 2015.

However, under draft guidelines produced by the European Banking Authority (EBA), lawmakers are debating whether to permit a bonus cap of 250% of bankers' salaries.

It also appears that pay rules could be relaxed to allow deferred payments over five years.

Meanwhile, politicians are also looking to implement stricter rules over jailing individuals that are found to be involved in financial scandals, such as Libor or currency market manipulation.